Bollocks. The big conglomerates worked just fine getting Japan and South Korea into high income economy status.
Without conglomerates, it is hard to concentrate enough capital in a developing economy.
Indian Economics Thread II
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Without conglomerates, it is hard to concentrate enough capital in a developing economy.
Yeah, but India building these chaebol-lite companies will inevitable come back to bite them in the ass like it has many times in South Korea. Letting a few rich families take over massive swathes of the economy is a disaster waiting to happen. It breeds corruption within the government and makes the government beholden to the companies rather than their people.
coolieno99
Junior Member
It's OK. Nothing to worry about. He's using his right hand, and not using his left hand. They don''t use bath tissue in India. They use their left hand.
Aren't large conglomerates good for India at this stage in its growth? They should be able to help India rapidly increase its industrial output. Without concentrating their resources in large conglomerates, India cannot possibly hope to compete with American, European, Chinese, Japanese, and Korean companies. Of course, these conglomerates must be properly managed.
I am one of the most anti-Indian people on the planet, but I believe that India is somewhat on the right path.
They’re correct to do this zaibatsu/chaebol but for the wrong reasons.
India is a feudal caste system not unlike the apartheid society of Anglo nations so this concentration of wealth resides only with the upper Brahmin caste, the Adanis, Patels, Ghandis, the rich oligarch families of India who take that money and rather than reinvesting into India, invest that money into the London and New York real estate, much to the delight of the anglos, of course.
broadsword
Brigadier
How about its population size? I see no wisdom in allowing a few conglomerates to control the economy of over a billion people.
That’s what the CPC and any fair minded individual would think, but for the ruling class of India who believe they earned it “in a previous life”, they’re not going to be sharing or investing that wealth or control into India. Rather, India exists to serve their individual interests, their petty squabbles in the anglosphere
That’s what the CPC and any fair minded individual would think, but for the ruling class of India who believe they earned it “in a previous life”, they’re not going to be sharing or investing that wealth or control into India. Rather, India exists to serve their individual interests, their petty squabbles in the anglosphere
I agree. India's economy seems to be struggling to generate a significant amount of wealth for Indians. In 2022, India's banking sector had roughly $2.7 trillion of assets (). In 2007, when China's GDP was similar to India's GDP in 2022, China's banking sector had around $7.5 trillion of assets (). It is possible that rich Indians are choosing to store their money abroad.
If India's conglomerates are in fact robbing the country, then we should cheer them on.
Wrong. It's their big conglomerates that actually make them stand a chance of competing with East Asian and Western companies, else India will have little to no chance to even appear on the table. So I actually think their big private companies are doing a good job.
Tata for example is the one now investing in a new battery cell plant in India. Other small Indian companies don't have the capital, scale or skills to undertake any big projects necessary for the country. So yes developing countries need big national champions, China included. Else you won't be able to compete globally.
Reason even in China's auto industry there should be consolidation and only the most competitive innovative big companies should survive and thrive. Having several dozens of companies doing the same thing in a particular industry is a waste of resources.
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